Martin Redeemed $3,000 (Principal of $2,000 and Interest of $1,000)of

question 38

Multiple Choice

Martin redeemed $3,000 (principal of $2,000 and interest of $1,000) of Series I Savings Bonds to pay qualified higher education expenses.His qualified expenses for the year totaled $2,500 and AGI consists of wages of $20,000.What is the amount of interest that Martin must include in income? (Round interim calculations to three decimal places)

• A)$0.
• B)$833.
• C)$167.
• D)$1,000.

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Definitions:

Support Level

Support Level is a price level at which a security tends to stop falling because there is more demand than supply, potentially preventing the price from declining further.

10-day Minimum Price

The lowest trading price of a security over a 10-day period, often used by traders to make buying or selling decisions.

Limit To Arbitrage

This refers to constraints that prevent traders from correcting mispricing in financial markets, often caused by factors like regulations, trading costs, or risk.

Confidence Index

A measure used to gauge the level of confidence that investors have in the market, often derived from bond yield spreads.